Tejas Networks Q1 FY 2025-26 Quarterly Results

Result Summary

• Tejas Networks Ltd reported a 84.2% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Jun (Q1 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a decline of 86.6%.
• Its expenses for the quarter were down by 54.0% QoQ and 65.0% YoY.
• The net profit decreased 232.1% QoQ and decreased 350.2% YoY.
• The earnings per share (EPS) of Tejas Networks Ltd declined at 11 during Q1 FY 2025-26.

Financial Statments for Q1FY26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Tejas Networks Ltd is a telecommunications company involved primarily in the design, development, and sale of high-performance networking products to telecommunications service providers, internet service providers, utilities, and government entities. The company is known for its optical networking and broadband access products, which are integral to building high-speed internet infrastructure. In recent years, Tejas Networks Ltd has been focused on expanding its product portfolio and enhancing its technological capabilities to capture a larger share of the growing telecommunications market. However, specific recent developments or strategic changes within the company are not available in this report.

Tejas Networks Revenue

The financial data indicates that Tejas Networks Ltd experienced a significant decrease in revenue during Q1 FY 2025-26 . Total Income for Q1 FY 2025-26 was ₹211.53 crores, compared to ₹1339.17 crores in Q4FY25, representing an 84.2% decline quarter-over-quarter (QoQ). Similarly, on a year-over-year (YoY) basis, there was an 86.6% decrease from ₹1575.80 crores in Q1 FY 2025-26. These figures suggest a substantial reduction in revenue for the quarter under review, indicating a sharp contraction in the company's income from its core operations compared to both the previous quarter and the same period last year.

Tejas Networks Profitability

Tejas Networks Ltd reported a significant decline in profitability for Q1 FY 2025-26. The Profit Before Tax (PBT) was negative at ₹-297.35 crores, contrasting sharply with a positive PBT of ₹232.61 crores in Q4FY25, reflecting a QoQ decrease of 227.8%. Compared to Q1FY25, where the PBT was ₹121.55 crores, there was a 344.6% decline YoY. The company's Tax expense also showed a negative figure of ₹-103.48 crores, down from ₹85.83 crores in Q4FY25 and ₹44.07 crores in Q1FY25. Profit After Tax (PAT) was similarly affected, with a loss of ₹-193.87 crores in Q1 FY 2025-26, as opposed to a profit of ₹146.78 crores in the preceding quarter, and ₹77.48 crores in the same quarter last year, showing a decline of 232.1% QoQ and 350.2% YoY respectively. This pattern extends to Earnings Per Share (EPS), which fell to ₹-11.00 from ₹8.50 in Q4FY25 and ₹4.40 in Q1FY25, marking declines of 229.4% QoQ and 350.0% YoY.

Tejas Networks Operating Metrics

The financial metrics for Q1 FY 2025-26 reveal a substantial downturn in Tejas Networks Ltd’s operating performance. Total Expenses in Q1 FY 2025-26 were ₹508.88 crores, a reduction of 54.0% from ₹1106.56 crores in Q4FY25 and a 65.0% decrease from ₹1454.25 crores in Q1FY25. Despite the reduction in expenses, the company's total income and profitability metrics have declined at a much steeper rate, leading to an operating loss for the quarter. The data does not provide specific details on the proportion of fixed versus variable costs, or any changes in operational efficiency, which could further explain the financial outcomes observed.